Why Publishers Fear Speculative Tokens — and How Stablecoins Can Fix It

Part 1 of the “Stablecoins in Gaming” series by the Blockchain Game Alliance

The Most Exciting Token Isn’t a Speculative Token

The adoption of blockchain and crypto tokens in gaming has reignited debate about the sustainability of open-market currencies.

When a game’s currency trades freely on exchanges, the economy often shifts from gameplay-driven motivation to market-driven speculation. Prices move not because of player activity or fun but because of volatility, investor sentiment, and macroeconomic conditions.

This first chapter explores why publishers are cautious toward speculative tokens, what they learned from early play-to-earn cycles, and how stablecoins could pave the way for more sustainable game economies.

1. Speculative Drivers vs. Gameplay Drivers

Open-market tokens frequently misalign player motivation.
Unlike closed-loop virtual currencies (such as Robux or V-Bucks), which maintain price stability inside their ecosystems, freely tradable tokens expose users to market fluctuations.

When prices spike, items can become prohibitively expensive for average players.
When they crash, players lose perceived value and engagement suffers.

This instability led traditional publishers to act cautiously.
Notably, Valve pre-emptively banned blockchain games from Steam in October 2021, citing risks of real-world monetary value destabilizing the player experience.

2. Publisher Risk Assessment

Mainstream studios fear speculative coins for several key reasons:

1️⃣ Volatility undermines engagement — price swings decouple player motivation from gameplay quality.
2️⃣ Operational unpredictability — studios can’t plan cash flows when in-game revenues depend on market prices.
3️⃣ Regulatory exposure — tradable tokens may attract securities and taxation scrutiny.
4️⃣ Market dependency — engagement becomes reactive to macro news, not to the fun of playing.

This dynamic creates a fragile economic loop : one that rewards speculation more than participation.

3. Case Study: Axie Infinity

Few examples illustrate this better than Axie Infinity, the flagship play-to-earn title that exploded in 2021.

As shown in our data report (page 7) :

• SLP and AXS prices peaked mid-2021.
• Daily active players surged roughly 2–3 months later.
• Both metrics declined through 2022 as liquidity and enthusiasm faded.

Key Insight: When rewards are tied to volatile, resale-driven assets, profitability compresses and retention falls.

Speculative dynamics initially fueled exponential growth. Yet, when token values dropped, players who were primarily motivated by earnings exited the ecosystem.

Economic consequence: The reward loop that attracted millions weakened as market sentiment turned bearish.

4. Introducing Nuance: Financial Inclusion and Mass Adoption

Axie Infinity’s story isn’t just one of unsustainable growth : it also demonstrates the social impact of blockchain gaming.

As Sky Mavis Co-Founder Aleksander Larsen observed, Axie enabled a unique form of financial inclusion, especially in the Philippines.

“People were buying chicken on the street using $SLP, because that’s what they were earning in the game.”

This shows that gaming can become a gateway to digital finance. Once users onboard through gameplay, they are exposed to broader blockchain applications from cross-border payments to stablecoin-based transfers.

While Axie’s economic model couldn’t sustain long-term retention, its contribution to crypto education and inclusion is undeniable.

5. Hype-Driven Surges and Short-Lived Metrics

Speculative tokens often generate impressive but temporary top-of-funnel growth.

1️⃣ Pre-launch airdrops: Wallet counts and Discord joins spike, but engagement fades when snapshots close.
2️⃣ Ecosystem announcements: Wallet activity rises briefly as speculators chase incentives, then moves on.

Implication: Tokens alone cannot sustain a long-term, engaged player base.
The core gameplay loop must remain the primary driver of retention and revenue.

6. From Speculation to Sustainability: The Stablecoin Path

Stablecoins can break this volatility cycle.
By maintaining price stability, they provide:

• Predictable earnings for creators and studios.
• Borderless, transparent payouts.
• A smoother bridge between fiat and crypto users.

In practice, stablecoins enable financial utility without speculation, keeping the focus on gameplay and creativity instead of market timing.